Mortgage Special Conditions

JRG_4

Hi,

I recently received an offer from Leeds BS which states a special condition of
“This Offer of Advance is made subject to all debts declared as being repaid by the Applicant(s) within their mortgage application, being settled in full on or prior to completion.”

We never told our broker that debts would be repaid in full before completion. Is this just standard wording or something i need to look into further?

Gem_M90

I have the same condition on my Halifax offer and I posted about this previously and had a few helpful comments, I know every lender is different and some are more stringent than others but you can have a look at what response I got anyway:
https://forums.moneysavingexpert.com/discussion/6196699/mortgage-offer-conditions#latest

MFWannabe

JRG_4 said:

Hi,

I recently received an offer from Leeds BS which states a special condition of
“This Offer of Advance is made subject to all debts declared as being repaid by the Applicant(s) within their mortgage application, being settled in full on or prior to completion.”

We never told our broker that debts would be repaid in full before completion. Is this just standard wording or something i need to look into further?

You need to speak to your broker but it sounds as though the mortgage is on condition the debts are paid off 

ACG

Had you recently cleared some debt (like a week or 2 before the application went in?).
That could explain it, as clearing debt can take a few weeks to update on the credit report, so we are told to put the debt on and tick a box to say it will be cleared in case the credit report picks it up. 

In any event, you need to speak to the broker.

JRG_4

ACG said:

Had you recently cleared some debt (like a week or 2 before the application went in?).
That could explain it, as clearing debt can take a few weeks to update on the credit report, so we are told to put the debt on and tick a box to say it will be cleared in case the credit report picks it up. 

In any event, you need to speak to the broker.

Hi,

I've spoke to Leeds directly and they've told me which debts have been ticked to be repaid. They are telling me its an amount that matches up what i pay per month for car finance and also my credit card. Not sure why my broker has done this as we never told him these would be paid to 0 by completion. Have a feeling this isnt going to go through now and we are due to complete on our new build at the end of this month!

dannis

JRG_4 said:

ACG said:

Had you recently cleared some debt (like a week or 2 before the application went in?).
That could explain it, as clearing debt can take a few weeks to update on the credit report, so we are told to put the debt on and tick a box to say it will be cleared in case the credit report picks it up. 

In any event, you need to speak to the broker.

Hi,

I've spoke to Leeds directly and they've told me which debts have been ticked to be repaid. They are telling me its an amount that matches up what i pay per month for car finance and also my credit card. Not sure why my broker has done this as we never told him these would be paid to 0 by completion. Have a feeling this isnt going to go through now and we are due to complete on our new build at the end of this month!

Hi JRG,
The exact same scenario has happened to me and I am just wondering how you got on in the end and how long did take for Leeds to re-assess?